The Brisbane market is set to cool a little from its white-hot 2007 performance, but still retain its mantle as one of the countries best growth regions.
The South-east corner of Queensland has been Australia's superstar performer over the past few years. Brisbane exceeded a number observer's predictions that the combined effects of interest rate rises, a federal election, the international credit crunch and the traditional Christmas slow-down would see the steam escape from one of the nation's hottest property markets. These concerns proved fruitless as Brisbane rolled on into 2008 with almost embarrassing enthusiasm.
Growth in the capital has followed a predictable pattern according to Andrew Donnelly, CEO of property research group Braxton Chase.
"As expected, growth in the Brisbane residential market has been rippling out from the city centre and the inner suburbs," says Donnelly.
Queensland's surging economy – estimated to have grown by over 5% during the 2007/2008 financial year – has been the engine room of the residential market, according to Donnelly.
"Increased investment and capital expenditure has generated thousands of jobs, leading to double-digit growth in median wages, which in turn has offset a general trend of deteriorating affordability," he adds.
Although the resources boom propelled regional growth, the whims of Mother Nature have unexpectedly hosed down some centres according to Braxton Chase.
"Across Queensland, bad weather patterns have dampened the performance of many regional markets. Widespread flooding has affected many mining boomtowns, and regional centres such as Rockhampton have also been affected," notes Donnelly.
Independent property advisors Herron Todd White (HTW) have noted that the strong regional minerals-fuelled demand from both investors and tenants caught many towns short. Centres have now brought substantially more stock online to cater for the surge in population and while some major infrastructure projects may see populations continue to move upward, towns are more prepared for the influx.
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